If you have ever been on a boat, you were probably made aware of the life jackets and how to access them in case of an emergency. These life jackets are meant to assist in the event that something goes wrong and you end up in the water. Insurance policies are similar to those life jackets that provide protection. Things like car accidents or broken arms are unexpected events that cost a lot of money if you don’t have the right coverage. Beyond your health and your car, there are many areas of your life that you might consider protecting against unexpected events.
Like a life jacket, insurance policies are designed to mitigate risks and provide protection. However, purchasing the right insurance policies is critical to ensuring your protection. The best policies and coverages for your specific situation will depend on things such as your family, age, lifestyle, employment, health, and financial situation.
Among all of the products offered by insurance companies today, many experts agree that there are a few essential policies that most people should consider. While disability insurance, homeowners insurance, and others could prove to be important depending on your situation, life insurance, health insurance, and auto insurance provide crucial protections. Researching on a site like PolicyScouter will provide you with abundant information about various policies, coverages, and premiums and help you better understand your insurance options. Let’s take a look at some basic types of insurance you should consider.
Life Insurance
With only about 54 percent of Americans carrying life insurance, a large portion of the population doesn’t have a meaningful safety net. The greatest benefit of life insurance is that it provides a death benefit to help your family cover your funeral, pay off debts, and provide for those you leave behind. The last thing that a grieving spouse or other family needs to worry about is putting food on the table or making the mortgage payment. Life insurance provides financial assurance in the event of income loss due to a death. The amount of insurance and type you need will depend on your situation and financial obligations.
Health Insurance
Recently, academic researchers have found that about 67 percent of bankruptcies filed are due to overwhelming medical bills. If you don’t have quality health insurance, you are leaving yourself open to a financial disaster from just one unexpected medical emergency. The rising costs of medical treatments and pharmaceutical drugs could leave you owing thousands of dollars if you don’t have health insurance. If your company doesn’t offer a health plan, you might seek a plan offered under the government subsidy program to secure affordable health coverage. Medical problems could present a great financial hardship, but health insurance could help you reduce your responsibilities to doctors and hospitals.
Auto Insurance
Since the majority of states require drivers to carry a minimum amount of liability insurance, most Americans have at least a basic auto coverage policy. Unfortunately, liability insurance only provides protection against losses sustained by other drivers if you are at fault in an accident. If you carry basic liability coverage, you and your car will not be protected after an accident. It is strongly encouraged that all drivers consider collision and comprehensive coverage to get full protection. Full coverage will help with the costs of an accident and also step in if there is a fire, theft, vandalism, or an act of nature that results in damage. Auto insurance is essential in providing protection against the risk associated with driving.
There are many situations in life that could arise and threaten your financial stability. Having adequate insurance can help provide a measure of protection against unexpected events. Your situation and needs will determine the types of plans and coverage amounts you require. With careful research, time, and consideration, you can find the right policies for you and your family.
